The writing has been on the wall for physical media for a while now. In May, Microsoft is reportedly set to hammer another nail into that coffin with the launch of the Xbox One S All-Digital. As advertised, the latest version of the console will drop the Blu-Ray drive, in favor of an all downloadable experience.

Shares of Apple (AAPL) climbed over 3.4% in morning trading Thursday as buzz builds regarding the highly anticipated unveiling of its new streaming video service that hopes to challenge Amazon Prime (AMZN), Netflix (NFLX), and Disney (DIS). The climb is part of a larger 2019 comeback, which begs the question is now the time to buy Apple stock?

Powell Halts Rate Hikes, Trump Might Not Be Pleased(Continued from Prior Part)Economy After its two-day meeting, the Federal Reserve signaled no more rate hikes in 2019. In December, the Fed projected two rate hikes in 2019. The Fed has also toned

Apple Inc.'s stock surged 1.3% in premarket trade Thursday, after a Needham upgrade to strong buy, which put the company on track to retake its position as the most valuable U.S. company by market capitalization. With 4.715 billion shares outstanding as of Jan. 18, according to the latest SEC filings, Apple's stock gain is set to raise its market cap to $898.5 billion from $887.2 billion on Wednesday. That would knock Microsoft Corp. down to second place, as the software giant's premarket stock drop of 0.4% implies a market cap of $898.0 billion, down from Wednesday's $901.6 billion. Amazon.com Inc.'s stock is down 0.1% ahead of the open, which would keep the e-commerce and cloud giant in third place with an implied market cap of $881.7 billion. Apple's stock has surged 19.3% year to date, while the Dow Jones Industrial Average has gained 10.4%.

Microsoft (NASDAQ:MSFT) continues zooming to record highs. As the Redmond, Washington-based software giant takes a dominant position in the cloud, investors have renewed their interest in Microsoft stock.Source: Shutterstock The recent run-up has put the near-term buy case for MSFT in doubt. However, due to its solid balance sheet and renewed growth, the case for holding MSFT stock has become more robust than ever. Microsoft Stock Is BackOnce written off as a company trapped in a declining PC business, Microsoft has successfully redefined itself. MSFT has now reached a market cap of $900 billion. This takes it to a record high for the equity. It has also regained the title of world's largest market cap.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 5 Cloud Stocks to Help Your Portfolio Fly To be sure, this is not the Microsoft that pushed me into Apple's (NASDAQ:AAPL) Mac ecosystem. No longer reliant on a PC monopoly of declining importance, it has turned itself into a leader in an increasingly influential cloud sector. Together with Amazon (NASDAQ:AMZN), it has become increasingly dominant in the enterprise information technology sector.The cloud in itself does not constitute a significant moat. Despite this, more than 800 CIOs cited Microsoft and Amazon as preferred vendors in over half of the top 30 IT products. Both companies have attracted this business--and built a moat--by continuously expanding their services.Thanks to a cash hoard that stood at $127.66 billion as of the end of 2018, MSFT can easily afford such expenditures. Last year, the company made $9.2 billion in corporate IT investments. Why MSFT Is a HoldAs a result, Microsoft has set records, rising for an eighth consecutive day. Despite its run, I do not think MSFT stock has become overvalued. The recent move higher takes its forward price-to-earnings (PE) ratio to just under 24 as of the time of this writing.Investors should also note that the company has placed itself on track to maintain double-digit profit growth. Analysts forecast profit increases of 14.2% for this year and 12.6% for fiscal 2020.Moreover, its cash position helps to give MSFT one of the strongest balance sheets in corporate America. That balance sheet has helped the company attain a AAA credit rating, a feat matched only by Johnson & Johnson (NYSE:JNJ).The key question is not whether one should buy Microsoft, but at what level. I agree with my InvestorPlace colleague Bret Kenwell who calls MSFT "a must-buy stock on a pullback." At these levels, I find it hard to conclude that Microsoft is anything but fairly valued. The forward PE ratio of almost 24 closely matches overall averages for the S&P 500.Still, I would buy if the stock stagnates for a few months or if it declines by at least 10%. I would also encourage long-term investors to stay put. In addition to the solid balance sheet, holders of Microsoft stock have benefitted from 15 straight years of dividend growth.This places it ten years away from dividend aristocrat status. It almost assures investors long-term holders that yields will rise from the more modest 1.6% levels of today. Though the buy case may appear tenuous for now, the hold case appears more solid than ever. The Bottom Line on Microsoft StockThe recent move higher in Microsoft has weakened the buy case for the equity, but its cloud dominance and strong balance sheet make MSFT a solid hold.Once written off as a laggard in a declining industry, a move into the cloud has again brought investors back to Microsoft stock. The stock continues to rise, and it has regained the title of world's largest market cap.However, its 14.2% growth rate combined with its forward PE of almost 24 places MSFT at fair value. A massive cash hoard, growing dividend, and solid balance sheet reinforce the case to stay in the stock. However, now is not the time to add to positions.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Microsoft Stock Is Just Too Good to Buy Right Now appeared first on InvestorPlace.

launched its first phone with a $1,000-plus U.S. starting price (the iPhone XS Max), and it also launched new Macs, iPad Pros and Apple Watches that featured higher starting prices than comparable, prior-generation models. Given all of that, it wouldn't have been shocking to see Apple's second-gen AirPods, which bring with them (among other things) improved talk times and support for hands-free Siri activation, feature a higher starting price than the $159 price that the original AirPods have carried since launching in late 2016.

Google was fined one-tenth of that amount by the European Commission on Competition. Alphabet's gains on Wednesday add to a 1-percent jump Tuesday, after the company's Google division announced its new video game streaming platform, Stadia. Google GOOGL was hit with another fine from EU antitrust regulators Wednesday, and investors didn't bat an eye.

Before Japanese electronics firm Sony (NYSE:SNE) got its groove back, critics slammed Sony stock as an irrelevant investment. But one chapter of the book remained immensely viable: PlayStation. Even now, with shares comparatively out of the doldrums, SNE depends heavily on its gaming division.Source: Dalvenjah via FlickrUnfortunately, another titan put this segment on notice. Joining rival Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) announced on Tuesday its new gaming platform, Stadia.Based on streaming technology, Stadia will advantage Alphabet's cloud-computing networks to deliver hardware-free gaming. The idea here is to promote open-source entertainment, which would disrupt Sony and console-maker Microsoft (NASDAQ:MSFT).InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnsurprisingly, SNE stock dropped more than 1% in the regular session, and shed nearly 2% during extended hours. Nintendo (OTCMKTS:NTDOY) also felt the heat. As a company levered mostly to consoles, Nintendo depends on a healthy gaming market. With Alphabet pushing its way in, NTDOY lost over 2%.Over many troubled years, Sony jettisoned several unprofitable businesses. A major reason why Sony stock became a turnaround success was management finally realized what works, and what doesn't. But the consistent winner throughout was PlayStation. If anything threats this iconic game console, it's presumably lights out for Sony stock. Two Scenarios for SNE stockGiven the recent announcement, most folks fall under two camps regarding SNE stock: either Alphabet (or Amazon, or both) eat Sony's lunch, or they fall short. Both sides of the debate find support from readily available evidence. * 10 Stocks on the Rise Heading Into the Second Quarter First, the bear case probably makes the most sense to passersby. One of the underlying themes of modernization is the de-cluttering effect. Back in the 1990s, owning the latest tech meant myriad wires bulging out of desks and other fixtures. Today, you can enjoy profound computing power condensed into a neat, little rectangle.Why, then, should our gaming apparatuses be any different? Amazon responded with their streaming-based gaming platform, and now we also have Google's Stadia.In addition, gaming transitioned into a serious economic proposition. Put another way, consoles are expensive. Many folks, particularly casual gamers, don't want to shell out $400 or $500 for yet another machine. This situation becomes more difficult during the holidays when companies prefer to release their flagship products.But with Stadia, the hardware is in the cloud, eliminating significant costs. Over time, Alphabet may eliminate Sony stock.However, Sony is deeply entrenched in the gaming world. While the consumer-tech firm has lost ground and credibility in several segments, it features a prized content moat.Kantan Games' CEO Serkan Toto wrote to CNBC that "gaming is a very nut to crack." While I respect Alphabet's ability to disrupt any tech sector, attacking Sony directly features a low probability of success. After all, the company sold a staggering 91 million-plus PS4s total. This figure utterly dominates Microsoft's and Nintendo's tally.These aren't two-bit players. So for Alphabet to disrupt SNE stock on gaming's turf? I just don't see it. Google Ironically Benefits Sony StockOverall, I wouldn't hit the panic button on SNE stock. While increased competition detracts nearer-term, the long-term picture remains incredibly viable for Sony.What casual observers don't understand is that the gaming equation isn't binary. Just because a disruptor like Alphabet or Amazon enters the fray doesn't necessarily spell doom for Sony stock. That's because the offered platform (i.e., streaming) is contextually inferior to the console.Earlier this year, I argued that Amazon's game-streaming venture was neat, but not a disruption. For instance, network latency represents a major problem and frustration for online gamers. But for Amazon to essentially stream the entire hardware via the net? It's possible but not at all practical. * 5 of the Best Dow Jones Stocks to Buy for Solid Dividends With Stadia, Google follows the same flawed playbook. But what's ironic and humorous is that Google went the streaming route to supposedly save gamers money on console purchases. How noble of them. However, they left out an important detail: to actualize their streaming vision requires more funds from gamers.Most of us probably assume that we have uniform network capabilities. But the reality is that network capacity (and prices) vary wildly across different regions. Therefore, gamers living in "underprivileged" communities must fork over additional money to practically advantage Alphabet's new platform.On the flipside, you only have to purchase a console once. This is especially true for casual gaming enthusiasts, the very market at which Google is aiming. Because why would a casual gamer shell out money in perpetuity (via high-speed internet subscriptions) to effectively play Stadia games?Ultimately, I'm staying the course with Sony stock. Like Amazon, Alphabet introduced an interesting concept. However, it's no match for SNE and its multiple decades of gaming infrastructure and expertise.As of this writing, Josh Enomoto was long SNE stock. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Sony Stock Has Nothing to Fear From Alphabetas Stadia appeared first on InvestorPlace.

Every once in a while we get a company that wows investors. Salesforce.com (NYSE:CRM) is one of them and Wall Street is in awe of it. The proof is that CRM stock's momentum represents risk appetite in the whole market. It rallies fast and yes, it falls fast, but almost never to any fault of its own.Source: Shutterstock On Mar. 5, when traders were selling out of CRM stock, I wrote about how wrong they were to do that. It has since recovered and is back to near all-time highs. And yesterday, CRM stock was leading the charge before the China headline hit the ticker tape to cause a market wide sell off and stall the run.The results show that for the long term, owning Salesforce stock is a winning proposition. Year-to-date, CRM is up 20% leading all indices. It is up 31% in 12 months and almost 200% in five years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo those wanting to invest in CRM for the long term should not worry about timing a perfect entry into CRM stock. It's a momentum stock, so it almost never leaves the door open for a clear entry point. The idea here is to buy high and sell higher much later. * 5 of the Best Stocks to Buy Under $10 Fundamentally, Salesforce stock is not cheap since it sells at a three-digit price-to-earnings ratio. It is more expensive than Amazon (NASDAQ:AMZN), which has been the poster child of expensive stocks. But when a company delivers hyper-growth as CRM and AMZN do, investors should award them a higher valuation. They are supposed to overspend, so they can continue to deliver outstanding growth. How to Approach CRM Stock NowInvestors incorrectly sold CRM stock on softer guidance this month. But I listened to its high profile leader Mr. Benioff, who emphatically said that they will continue to set records on Wall Street, and I believe him.For the short term, momentum stocks like CRM make for good trading vehicles because they move fast in both directions. The key to success here is finding the levels that matter. For that, I use the lower time frame charts.At the end of January, CRM broke out of the $153 neckline and since then, it continues to trade inside a defined range. The breakout neckline was successfully tested twice already so it is short-term support. Anytime Salesforce stock falls to it, I can buy it for a swing trade with tight stops at $5 and $9 below it.There is another mini support level at $159 per share. So if I am long already into a swing trade, I could use this as a stopping point depending on my trade intentions. I expect it to hold as natural support provided the geopolitical headlines or the Fed today don't ruin the run. Click to EnlargeConversely, if the CRM bulls can breakout out of $166 per share they run into open space where there is virtually no resistance. The bears will have a hard time to stop the rally. The target of the breakout is really open to interpretation, so then I'd set trailing stops to lock in the profits and enjoy the ride. Those who know options can then sell calls against their stock to generate synthetic dividends.The bottom line, CRM is an incredible success story for the long term and it presents many short-term trading opportunities. Today, it will also likely represents a leading indicator to the market-wide risk appetite. If CRM is getting bid, then the major indices will also be in the hands of the bulls. Shorting CRM stock long term is the equivalent of shorting markets in general. For now, this will not be my approach to the stock.Nicolas Chahine is the managing director of SellSpreads.com. As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Why Salesforces Stock Continues to Impress Most Investors appeared first on InvestorPlace.

Apple Is Tackling Its Challenges One by One(Continued from Prior Part)Federal court rulingA federal judge in the United States recently sided with Apple (AAPL) in a decision that is expected to save the iPhone maker billions of dollars. As Bloomberg

[Editor's note: This story was originally published in November 2018. It has since been updated and republished to coincide with today's rout in video game stocks.]If you're looking for an investment sector that is very likely to rise higher, video game stocks are your ticket. The concept of the video game has evolved from nerdy niche to mass mainstream infiltration. Still, powerful fundamental tailwinds haven't prevented video game stocks from absorbing huge losses.Indeed, anywhere you look, the major (and minor) indices are flashing red. The broader markets finished 2018 down 6.2%, and our own Dana Blankenhorn, in November 2018, stated bluntly "we're already in a bear market." Any contrarian analyst would be hard-pressed debating Blankenhorn on this issue as the volatility persists into 2019.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm certainly not going to attempt it, especially if I'm looking at esports and gaming stocks. The video game as an investment vehicle is a platform that has profited many investors handsomely over the years. Unfortunately, the declines in video games and esports stocks over the past year have forced everyone to rethink their assessments.I can't deny the obvious: This is a time when all market participants should strongly consider protective measures. We have many factors that are completely unrelated to video games but could end up roiling video game stocks. However, I'd also caution against overreactions. Recall that the Dow Jones lost double digits between late January and early February of 2018 … * 7 Invincible Stocks Leading The Bull Market Higher The point is to protect yourself from this violent storm, but also to realize that all storms eventually fade away, producing excellent deals only in hindsight. If you've got the nerve, here are seven video game stocks on serious discount. Sony (SNE)Source: Dalvenjah via FlickrWhen you think about the modern video game, you immediately think about Sony (NYSE:SNE). Admittedly, SNE stock has become a running joke within consumer-electronics circles for the underlying firm's other endeavors. For instance, its smartphone is nowhere near as popular as Apple's (NASDAQ:AAPL) iPhone, and it once ran a computer-monitor business.But don't ever question SNE stock for its part in advancing the video game to the mainstream.Its PlayStation console resonates deeply with consumers, and better yet, it keeps improving. Just a few days ago, Sony announced during the Consumer Electronics Show (CES) that the current-generation PlayStation 4 hit 91.6 million unit sales. More impressively, this tally occurred over roughly a five-year lifespan.Of course, the markets don't typically respond to past achievements. What makes SNE stock so compelling for the video game industry is corporate synergy. Make fun of Sony all you want, you can't deny its vast entertainment portfolio. Management can easily leverage this for exclusive titles, which they do frequently for marquee brands. Microsoft (MSFT)Source: Shutterstock Every great organization has an equally great competitor. In the war of supremacy for the video game, we have two top console-makers: Sony and Microsoft (NASDAQ:MSFT). The rivalry between the two tech giants is no joke for many gaming enthusiasts.Microsoft stopped reporting sales figures for its Xbox console, which understandably drew snide snickering, but estimates put it around the 40 million mark. Based on this, Sony is vastly outpacing Microsoft in the console wars. But that hasn't stopped MSFT stock from making significant gains in the markets.Part of the reason is that in terms of graphics and gameplay capabilities, Microsoft has largely gone toe-to-toe with Sony. Additionally, the house that Bill Gates built features its own batch of attractive exclusive titles, including the ultra-popular "Halo" series. Naturally, this has encouraged long-term investors to pile in on MSFT stock. * 10 Companies That Could Post Decelerating Profits And while I'm a Sony guy, I think Microsoft offers better overall stability. Along with its video-game business, it has a virtual lockdown on PC operating systems and various pieces of professional software. Plus, MSFT stock pays a much higher dividend, which isn't something to ignore at this juncture. Nintendo (NTDOY)Source: Shutterstock In my opinion, and those of fellow gamers, the architect of today's video game is Nintendo (OTCMKTS:NTDOY). However, other video game stocks have captured investors' attention. Moreover, as a Japanese over-the-counter name, NTDOY stock doesn't always generate positive news.That has proven especially true in 2018. Last year, NTDOY stock returned handsome monetary rewards for shareholders thanks to the Nintendo Switch. This spectacular console is actually a hybrid device. Nintendo designed the Switch primarily for home usage, but you can just as easily take it on the road. However, great news becomes old news quickly, and shares faltered.Still, the scope of the damage seems excessive. Over the past year, NTDOY stock has dropped a staggering 30%. While further losses are not out of the question due to the overall market panic, the bears are overlooking the company's long-reaching brands. For instance, the "Mario Bros." franchise is gaming gold, which Nintendo can leverage for profitable synergies. Electronic Arts (EA)Source: Shutterstock For anybody who has picked up a video game in the last decade, chances are, you fed the Electronic Arts (NASDAQ:EA) cash cow. From developing games for the Commodore Amiga -- does anybody remember that? -- to driving the latest innovations in esports, EA stock is a mainstay within the industry.That said, video game stocks have incurred horrific losses, and Electronic Arts was not spared in any way, shape or form. Since July 25, EA stock has hemorrhaged more than 43% of market value. Some of that was due to the poor outlook given in its first-quarter fiscal 2018 earnings report. But later losses stemmed from internal issues, such as the delayed launch for its heavily-anticipated video game Battlefield V.I understand why investors are now hesitant on EA stock. A few months ago, I provided my analysis on the company's extreme volatility. That said, my ultimate take is that Electronic Arts suffers from fixable problems. * Mizuho: 7 Long-Term Value Stocks to Buy Now Moreover, they leverage an enviable sports-licensing franchise. No matter what happens, throngs of gamers always eagerly await the latest iteration in the Madden or FIFA series. On the surface, such fandom seems irrational because the changes are minute. Still, the consumers are shelling out big bucks every year, so who am I to judge? Activision Blizzard (ATVI)Source: Shutterstock One of the biggest reasons why the video game industry has captured mainstream attention is the proliferation of the online shooter genre. And in this genre, no one does it better than Activision Blizzard (NASDAQ:ATVI).Over the last few years, ATVI stock has skyrocketed based largely on its Call of Duty franchise. Rather than being shunned by the real heroes in uniform, our military forces embrace these games. Earlier last year, Activision announced that it donated more than $100,000 worth of Call of Duty games to the United Service Organizations, or USO.However, like Electronic Arts, ATVI stock incurred heavy losses in the markets. Since the close of Oct. 1, Activision shares have tanked 40%. A major culprit is fierce competition, particularly from Epic Games' Fortnite.In the long-term, though, ATVI stock looks very intriguing. Over a year-and-a-half of market gains was wiped out in less than two months' time. That's a little bit over the top considering that the company levers one of the most popular franchises among video stocks. Nvidia (NVDA)Source: Shutterstock Semiconductor firms like Nvidia (NASDAQ:NVDA) started to light up the markets in 2016, and that momentum continued into last year. Unfortunately, we learned a physics lesson with NVDA stock: what goes up must come down.And shares are doing exactly that. What appeared to be a promising start for 2018 turned into a veritable nightmare. Between the January opener and the end of September, NVDA stock gained nearly 44%. Since the beginning of October, however, the company has tumbled over 48%, finishing the year down 31%.As a leader in advanced technologies, Nvidia took the brunt of the sector fallout. The geopolitical wrangling between the U.S. and China isn't helping matters. Plus, the severe plummeting in bitcoin prices is likely to negatively impact its crypto-mining-specific graphics processing units, or GPUs. * 7 Stocks to Buy That Are Run By Billionaires Nevertheless, I really like NVDA stock, especially at these prices. I'm not the only one, as notorious short-sellers Citron Research just recently reversed their bearish take on the company. While you shouldn't rush in simply based on one expert opinion, Nvidia offers exposure to multiple next-gen businesses. I doubt that NVDA will stay deflated for long. GameStop (GME)Source: Shutterstock In following with my usual routine of sticking speculative names in the back, I bring to you GameStop (NYSE:GME). GME stock is easily one of the riskiest investments among video game stocks. The company pays out a near-10% dividend, which tells you all you need to know.The other reason that GME stock is down -- aside from all the terrible factors that slammed valuations -- is related to its PR crisis. Many gamers hate GameStop because the retailer rips off customers who are looking to trade in their games and paraphernalia.That's true, but at the same time, you can't have it both ways. The reason why other gamers love GameStop is due to their extensive library of preowned products. In my opinion, it's far superior to online sales and subscription-based services due to its easy return policy: if you don't like a particular video game, just return it.This return policy is a major but underappreciated benefit for GME stock because many gamers are young. They (or their parents) may not have the funds for subscription services. GameStop gives these customers better pricing and superior flexibility.As of this writing, Josh Enomoto was long SNE and bitcoin. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post 7 Video Game Stocks on Steep Discount appeared first on InvestorPlace.